Canadian real estate demand has never been this elevated before. That demand is the primary issue driving home prices higher, according to BMO senior economist Robert Kavcic. Rejecting the supply shortage narrative, he argues inventory levels are robust. Excessively low interest rates are just incentivizing too much demand. It will eventually end, as soon as […]
In Canada, it only goes up. Well, when it comes to real estate prices, anyway. Fitch Ratings‘ sent its latest global real estate forecast to clients this week. The credit rating giant sees Canadian home price growth slowing but still firm. At the same time, this isn’t driven by lower rates or higher incomes. They […]
American credit will experience drag as inflation forces a monetary response. The US Federal Reserve announced it will double the rate it tapers its bond-buying next month. RBC economist Josh Nye has forecast the program will now end as early as March at this pace. This would be months ahead of schedule, with RBC seeing […]
Canadian real estate buyers are rushing to buy anything they can, from Victoria to St. John’s. National Bank of Canada (National Bank) attributes this to FOMO on low interest rates. The Big Six bank said home buyers are trying to purchase before the Bank of Canada (BoC) raises rates. Especially buyers that have mortgage pre-approvals […]
Canada’s central bank renewed its mandate, but with one fundamental change. The Bank of Canada (BoC) will now consider employment in addition to its goal of maintaining a 2% rate of inflation. The Governor stressed, it’s difficult to figure out when full employment is present. Two of Canada’s “Big Six” banks say full employment has […]
Canada’s oldest bank has a warning for homebuyers — prices don’t always rise. The uncharacteristic message came from BMO‘s chief economist Douglas Porter. Canada has seen few home price corrections, causing homebuyers to think of it as “risk-free.” Not just in Toronto or Vancouver, but virtually every market in the country, all simultaneously. BMO wants […]
One of Canada’s “Big Six” banks is declaring next year to be “The Year of The Hike.” National Bank of Canada (NBC) chief strategist (and poet-in-residence) Warren Lovely is calling the first interest rate hike in just a few months. He sees the Bank of Canada (BoC) making its hike in March, way ahead of […]
Canadian households are on an epic mortgage borrowing spree. Data from TransUnion shows explosive growth for new mortgage originations in Q2 2021. Sparked by low rates, the surge reveals that excess demand has played a significant role in exhausting supply. Canadian New Mortgages Jumped 49% Canadian mortgage originations made a sharp increase from historical levels. […]
Canada’s oldest bank is accelerating its forecast schedule for the central bank. BMO sees the first interest rate hike in April, after yesterday’s announcement from the Bank of Canada (BoC). That would be 3-months sooner than previously forecast, and the first hike is just the beginning. The forecast shows the overnight rate rising as much […]
One of the world’s largest economies is handcuffed to over-leveraged home buyers. An analysis from Oxford Economics looks at two rate hike scenarios in Canada. Tony Stillo, the firm’s chief economist, expects the Bank of Canada (BoC) to hike interest rates slowly. If the central bank takes this path, all households will bear the burden […]
